3. Raise the minimum wage to ensure economic stability for all
It is time for Congress to raise the federal minimum wage to meaningfully improve living standards for millions of Americans. Today’s federal minimum wage is just $7.25 per hour, which is about $15,000 annually for a full-time job. It has not been raised in more than a decade and is not enough to keep a one-adult, one-child household out of poverty. This is not how the minimum wage was intended to work: In the late 1960s, a full-time worker earned $1.60 per hour at minimum wage, which is equivalent to more than $12 per hour in today’s dollars.
There are also many workers who earn less than minimum wage, or a “subminimum wage.” Tipped workers are only guaranteed a subminimum wage of $2.13 federally, despite evidence from states demonstrating that ending the subminimum wage nationwide would significantly decrease poverty and inequality without hurting employment.
Subminimum wages are also an issue for disabled workers. In 1938, the Fair Labor Standards Act authorized employers, after receiving a certificate from the Wage and Hour Division, to pay below minimum wages to workers with disabilities. Workers who fall under this classification are paid an estimated average of $2.15 per hour. This is just one of the many reasons why in 2019, at least 1 in 4 disabled people lived under the poverty line.
The Raise the Wage Act would gradually lift the federal minimum wage to $15 per hour by 2025 and index it to median wage growth thereafter so that the minimum wage would automatically increase when wages rise nationally. The bill would also phase out the subminimum wage for tipped employees, teenagers employed for 90 days or less, and disabled workers. These changes would lift up to 3.7 million Americans out of poverty and especially benefit people of color, women, and people with disabilities, who are disproportionately represented in low-wage jobs.
For more information on the minimum wage, see “Building an Economy That Supports All Children Requires Raising the Minimum Wage, ” “Ending the Tipped Minimum Wage Will Reduce Poverty and Inequality, ” and “Raising the Minimum Wage Would Be Transformative for Women.”
4. Provide permanent paid family and medical leave and paid sick days
The United States is the only industrialized nation in the world to not guarantee workers access to any paid leave. As of March 2020, an estimated 25 percent of private sector workers—and 69 percent of workers earning less than $11 per hour—did not have access to a single paid sick day. Additionally, in 2020, 4 in 5 private sector workers lacked access to any paid family leave for longer-term family caregiving needs; and the disparity was worse among the lowest-wage workers, where 95 percent did not have access to paid time off.
This puts workers in the impossible position of having to forgo needed income, or even their job, to recover from an illness or care for a sick family member. Every year, workers and their families lose an estimated $22.5 billion in wages due to a lack of access to paid family and medical leave. While Congress addressed this need during the pandemic by providing temporary emergency paid sick leave and emergency paid child care leave through the Families First Coronavirus Response Act, loopholes and exemptions excluded millions of workers. The program also became voluntary in 2021, meaning employers can now refuse to offer paid leave again.
Congress must prioritize passing paid sick leave and permanent paid family and medical leave, particularly to support the lowest-income earners. Several proposals—including the American Families Plan, the Family and Medical Insurance Leave (FAMILY) Act, and the Healthy Families Act—have been introduced to address this issue. They include comprehensive paid family and medical leave, allowing workers to take time off work to recover from a health condition, care for a child or loved one, or grieve the loss of a loved one.